BY A.MATTHEWS

CERRITOS, CA – The downturn and ways to beat it, was once again the focus of the TiE (The Indus Entrepreneurs) monthly meeting held on March 18 at the Sheraton here. The keynote speakers, Arjun Malhotra of HCL Technologies/ Headstrong fame and Kunoor Chopra, CEO of LawScribe, a fairly recent legal outsourcing company, provided the contrasting face to the evening. To an eager audience they presented useful tips to keep from going under.

Introduced by President Elect Navneet Chugh, Malhotra focused on his entrepreneurial adventures over the last four decades touching on how he started on his first job  in DCM when he was just 20. Later, HCL was launched in 1975, as he recalled, in his grandmother’s ‘barsaati’ in New Delhi, firstly because it was free and more importantly because of  its  upscale location in Golf Links. From a six-person operation with Rs. 175,000 ( $17,500) HCL grew into one of India’s largest Information Technology company’s. Moving to the US in the late 1980s, Malhotra founded TechSpan in 1998 with funding from Goldman Sachs and Walden International. The merger of TechSpan with Headstrong in 2003  has built an end-to-end services organization with Headstrong being recognized as one of the fastest-growing IT-based Financial consultancies.

Malhotra serves as CEO and Chairman of Headstrong’s Board of Directors.

Giving valuable advice for these hard times, Malhotra said passion was  a key factor and quantified this by adding, “ have a passion for something with a large market.” He underscored the importance of “building a team of those smarter than yourself,’  cost cutting by moving manpower to lower cost locations  and outsourcing the previously thought of “sacred cows” like domain knowledge.

Commenting on Headstrong’s performance he said the slowdown had no doubt impacted the company. “We had our best year last year , but the bottom line is still looking good,” he added on an optimistic note.  He urged the audience that if the US was becoming more protectionist, we should not sit and cry over this but view it as a problem to which a solution can be found.

“2009 is a write off and 2010 is a question mark. What we should do is forget the horseshit and look for the pony creating it,” he emphasized candidly..     

Introduced by TiE President Smita Batra, Kunoor Chopra spoke of how she launched LawScribe in 2004 in India and how it has grown to become a leader in  Legal Process Outsourcing. Kunoor is an attorney licensed in California and a graduate of Loyola Law School. She was admitted to practice in California in 1998.

Focusing on Recession Proof business, Kunoor highlighted ‘smart sourcing’ explaining that a company which has the outsourcing element will survive. Law firms and IT companies with high percentages of layoffs and threat of closure, needed to cut costs by outsourcing.  Giving another piece of advice she said the blueprint for all businesses, from various segments, was basically the same , so get tips from entrepreneurs who may not necessarily belong to your industry.  “Don’t forget what you don’t know. Be open to listen to people and admit your mistakes,” she said adding that building a great team was crucial to success. “I did not have a partner when I began and fumbled through this all alone. Then I started hiring the right people and my business catapulted!”

She focused on the importance of branding to survive and build credibility. The core of how to face the downturn she said is “Don’t be afraid.” As most companies are not increasing revenues, they are being forced to take cost cutting steps. Minimize loses by becoming “lean and mean” This involves downsizing, voluntary resignation packages, cutting overtime costs, sabbaticals among others.

Wrapping up on a good note she urged the audience to enjoy life, family and success despite the gloom and doom.

Earlier a 60 seconds pitch was made by Ketan Mali of Graystone Realty. Arvinder Mann, Chair of Special Interest Groups (SIG) addressed the meet soliciting ideas for the various groups like Financial, Technology, Health which will hold separate meetings apart from the regular monthly meets.